economic collapseMoney manager Axel Merk thinks new Fed Chief Janet Yellen can’t do much to improve the labor market even though she claims she’s most interested in helping Main Street, not Wall Street.  Merk says, “Yellen is from Berkley, our neighborhood, and it’s all about warm and fuzzy feelings.  Ultimately, of course, there is only so much the Fed can do for Main Street.”
Merk says, “Home price inflation is not sustainable.  It’s a very fragile policy because it can evaporate at any time.  The moment the ‘taper’ talk started, new home sales, existing home sales deteriorated because, guess what, as interest rates move up, you have to pay more for your home.”
On the possibility that the economy could suddenly collapse, Merk said, “What could possibly go wrong when the stock market goes up every day?  Asset price inflation means asset price inflation can reverse.  You can have a collapse in asset prices at any time.  You saw it in gold a little bit in April of last year.  There was just no bid out there.  The same thing can happen in the equity markets.”
Merk says he holds core assets of physical gold and silver, “mostly gold.”  Join Greg Hunter as he goes One-on-One with Axel Merk of

From Greg Hunter, USAWatchdog:

  1. I don’t subscribe to the notion that Silver is poor man’s Gold.  Herr Merk should review a 650 year Silver chart.  There is vastly much more upward potential for price movements in Silver than Gold.  Gold is good for diseases of the heart.  Or so said Cortez. If the FED is implementing QE to sustain prices in the housing market than they have already failed. Ask any relatively new home owner whose home value is now underwater. 

  2. AJ…What Merk means is that CB’s and gov’ts deal in gold not silver.  They are the ‘rich’ players.   Agreed there is more potential upside in silver, but at the end of the day the world is headed toward a gold standard of some type not a silver standard. 

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